The Allentown Redevelopment Authority (ARA) last night postponed selecting one of two potential developers of a 3-acre tract at the northwest corner of 2nd and Hamilton streets until misunderstandings are clarified.

A committee of city officials that reviewed proposals from the developers recommended neither be selected pending a study.

A consultant engaged by the authority, Allentown Economic Development Corp. (AEDC) and the city would study the possible uses for the site in relation to the outlook for development in the entire area in that section of Hamilton Street.

Rather than take that route, the authority agreed to having the developers meet with the review committee to learn specific objections to their plans, clearing points of misunderstanding and being prepared for ARA action Sept. 25.

William M. Berger and Jeffrey Epstein said they felt the authority had been unfair in spelling out the criteria to be contained in their proposal. They said they devoted a lot of time and money to prepare their proposal and felt it was complete.

They said they were not aware of the scoring system used to evaluate the proposals. Berger said they would not proceed with conditions that would hamper their getting tenants.

Berger-Epstein Associates did not publicly reveal their plans. However, the authority is interested in having retail and office buildings on the site.

Attorney Frederick Nabhan of the Hamilton Investment Group, the other developer, said he could proceed as soon as he received control of the property. He said he needs a deed to get the state to commit itself to leasing office space. His project calls for a mini-market and an office building.

Donald M. Bernhard, city community development director, chided Nabhan for not getting the lease signed by the state while he had control of the property for 18 months.

"Two years ago, you said the day after you had control, you would have a signed lease," Bernhard reminded Nabhan.

ARA solicitor Morris Efron added, "You had two agreements and you never came in with proof of financial ability."

John V. Cooney, an authority member, said, "My only concern tonight is whether they are ready do go or not. I have new information as to the readiness state of each of the projects and suggest we reconsider the (committee) evaluation."

Chairman Michael M. Rosenfeld said there has been misunderstanding on the part of both parties as to what the authority wants and suggested another meeting.

In other business, the authority approved $1,260,000 in tax-exempt financing for a 48-unit apartment project at E. Mosser Street at Washington Crossing, directly east of Keck Park.

The developers are Bruce Loch and Arnold Rapoport, who built nearby townhouses. Each of twoapartment buildings will have 24 units renting for $285 a month, Rapoport said.

They will have one bedroom, dining room, bathroom and kitchen with refrigerator, stove, dishwasher and garbage disposal.

The authority held hearings on two other requests for tax-exempt financing. Formal action on those was postponed, pending their receiving financial commitments.

The other projects are planned by Steven Rose, Robert Van Horn, Mark Grim and Laurence Popowich at 39-41 N. 11th St. and at Hancock and E. Turner streets.

They are seeking $420,000 in tax-free financing to convert the 11th Street properties into seven apartments. Six would rent for $340 and the seventh for $360 a month. Twenty off-street parking spaces would be provided.

A total of $594,800 in tax-free financing would be used to finance the construction of an apartment building with 18 units on a vacant tract at Hancock and Turner streets. Seventeen units would rent for $315. The other would rent fr $295.

Bernhard said he favors the three projects because they provide housing with affordable rents.